Somerset residents facing price hikes for bins amid contractor issues
Suez admitted it had made "significant financial losses" in the last year
Residents in Somerset may have to pay extra in order to have their bins collected as the contractor faces financial struggles.
Suez, which currently holds the rights to the contract for all collections from Somerset footpaths, is in charge of taking refuse away until 2030.
But despite the company making £24 million from the contract annually, the company said that they were making "significant financial losses".
As a result, Suez is considering leaving the contract early should the cost of collections remain at their current levels.
In an effort to reduce the likelihood of their exiting the contract, Somerset Council has said it will liaise with the company to negotiate a new deal.
As well as this, the Council has also said it will ensure that there will be no disruption to weekly collections until the situation is resolved.
Suez has been facing issues following the COVID-19 pandemic, when it took over the contract in April 2020.
Aside from the pandemic, however, Suez has also been hit by other problems including a driver shortage, a drop in revenue and rising costs with staff.
Councillor Dixie Darch, portfolio holder for climate change and the environment at Somerset Council, said: “Suez would incur a payment penalty for exiting the contract early, but they say this would be dwarfed by the losses that they are making.
“Inflation is a factor in this, but it is not the only factor. Whichever route we go down, we’re not proposing any changes to the way in which waste is collected or disposed of."
Darch added that the Council has invested "significant capital" in vehicles and supporting waste transfer and treatment infrastructure, which has already driven up prices for people using the service.
“The focus must be on finding a way forward that limits the financial impact and avoids disruption to a crucial statutory service.”